Verizon Month to Month

Verizon today set itself up to better compete against AT&T by announcing the option of month-to-month cellphone service. The carrier is one of the last to adopt the recently leaked policy but now lets customer buy phones and start service without the requirement of signing up for at least one year or else facing an early cancellation fee. This will also let customers bring over unlocked CDMA and EVDO devices rather than having to buy one of Verizon's own products when switching providers.

As with most such strategies, Verizon's deal removes the subsidies that would normally apply to phones, each of which varies depending on the device; an LG Dare that would normally compete with the iPhone at $200 on contract sells for $410 without the obligation.

The more liberal pricing applies as long as customers sign up for a Nationwide Voice or Data plan, regardless of cost. Existing customers have to ride out the terms of their current contract to avoid a cancellation fee but afterwards can replace phones or PC cards without returning to a long-term plan.

Providing the option helps Verizon potentially deflect criticism from federal officials, which have previously criticized US carriers' reliance on contracts. It also sets up the telecoms company for its Any App, Any Device program for certified but unofficial devices and will be essential for Verizon's move to 4G in 2010, which will let customers switch away from AT&T without having to give up existing hardware.

By Electronista Staff